Gold Smuggled as Platinum via FTA: India Loses ₹450 Crore in Revenue

• Gold is being imported into India disguised as platinum jewelry, exploiting the Free Trade Agreement (FTA) with Thailand.
• This scam has led to a revenue loss of approximately ₹450 crore for the Indian government in the last two months.
• About 5 tons of such jewelry, containing 90% gold and only 4% platinum, have entered India through various ports.
• The influx of duty-free gold has caused domestic gold prices to drop by about ₹2000 per 10 grams compared to international rates.
• This issue exacerbates government concerns over the current account deficit and a weakening rupee, impacting the economy.

Key Questions Answered

How will India stop gold disguised as platinum?

India is stopping gold disguised as platinum by imposing import curbs on all forms of gold, silver, and platinum articles.

What is the impact on gold prices in India?

Gold prices have seen a sharp fall in India, with 22-carat gold priced at ₹13,205 per gram and 18-carat at ₹10,840.